What a New Home Owner Should Know About Mortgages
Interest rates are the single biggest factor that determines exactly how much your mortgage is going to cost you over the long term. An increase of just one percentage point can add a pretty significant chunk of interest onto the cost of your loan, while a reduction can save you plenty. This simply means that if you are planning to apply for a mortgage that it is well worth your while to do your homework and find out all you can about interest rates beforehand.
How do Lenders Calculate Interest Rates?
When lenders set interest rates, they do so based on figures referred to as the federal funds rate and the discount rate, both of which are set by the Federal Reserve. The federal funds rate is the interest rate that banks charge each other, while the discount rate is the interest rate that the Federal Reserve charges to lenders. These rates have a direct influence on federal interest rates, and it is also these rates that lenders base mortgage interest rates on.
Most lending institutions update their interest rates daily, or even several times per day, taking into account not only Federal Reserve rates, but also other factors that are dependent on the costs of lending mortgage money to applicants. Because these costs are more or less the same for all lenders, base interest rates do not usually differ all that much.
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How do Lenders Calculate Interest Rates?
When lenders set interest rates, they do so based on figures referred to as the federal funds rate and the discount rate, both of which are set by the Federal Reserve. The federal funds rate is the interest rate that banks charge each other, while the discount rate is the interest rate that the Federal Reserve charges to lenders. These rates have a direct influence on federal interest rates, and it is also these rates that lenders base mortgage interest rates on.
Most lending institutions update their interest rates daily, or even several times per day, taking into account not only Federal Reserve rates, but also other factors that are dependent on the costs of lending mortgage money to applicants. Because these costs are more or less the same for all lenders, base interest rates do not usually differ all that much.
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Learn How to Refinance Your Home Mortgage
Refinancing is the process of converting an existing mortgage into a new loan. Usually, refinancing is done for one of three reasons: to save money, to convert the existing mortgage to a new type, or to exchange some of the equity in the property for cash.
Thinking of refinancing? It is no more complicated than obtaining that initial mortgage, but the process is not exactly the same, and there are a few extra things to think about if you are toying with the idea of refinancing your existing mortgage.
#1: Is refinancing the best option?
First on the list of things to do is to decide if you should refinance, or if there is a better option for your needs. Refinancing is not always the best solution. In some cases there is an easier and more cost effective alternative that will suit your financial situation better.
Before making any moves, ask yourself what it is that you want to accomplish by refinancing. Contemplate if there is a better way to achieve whatever your goal happens to be rather than refinancing. If you want to take advantage of lower mortgage rates or switch to a different type of mortgage, then obviously refinancing is the only way to do that, but for other types of goals, refinancing may not always the best option.
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Thinking of refinancing? It is no more complicated than obtaining that initial mortgage, but the process is not exactly the same, and there are a few extra things to think about if you are toying with the idea of refinancing your existing mortgage.
#1: Is refinancing the best option?
First on the list of things to do is to decide if you should refinance, or if there is a better option for your needs. Refinancing is not always the best solution. In some cases there is an easier and more cost effective alternative that will suit your financial situation better.
Before making any moves, ask yourself what it is that you want to accomplish by refinancing. Contemplate if there is a better way to achieve whatever your goal happens to be rather than refinancing. If you want to take advantage of lower mortgage rates or switch to a different type of mortgage, then obviously refinancing is the only way to do that, but for other types of goals, refinancing may not always the best option.
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Bank of America Mortgage Modification New Program For Homeowners
If you are looking for a Bank of America mortgage modification, there is a new program out there that few people know about.
For those of you who haven't heard of it, it's pretty exciting news if you have a B of A loan. You can now use a modification service to see if you qualify and get your loan modified in lightning fast speed. I'm talking seven days or less.
You will need your loan #, your property address, the last 4 digits of your social and a brief hardship description. That's it! With this information, certain loan modification services can call your lender and verify that you are approved for this program.
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For those of you who haven't heard of it, it's pretty exciting news if you have a B of A loan. You can now use a modification service to see if you qualify and get your loan modified in lightning fast speed. I'm talking seven days or less.
You will need your loan #, your property address, the last 4 digits of your social and a brief hardship description. That's it! With this information, certain loan modification services can call your lender and verify that you are approved for this program.
Read more ...
Unable To Get Mortgage Debt Relief? Be Ready For A Lawsuit
The United States is home to 94% of all the lawsuits in the world and 75% of the world’s attorneys. Very few of them are willing to help you get mortgage debt relief, or give you free financial advice, but many are willing to come after you for the default judgment..
Once you are served with a lawsuit, the clock starts ticking. You may be served by mail or in person and you have a very limited amount of time to answer the lawsuit. In most instances, the lawsuit will typically overstate the claim. For example, if you were involved in an automobile accident that caused $5,000 of damage to the other car and $5,000 of medical damages and you get sued, it will be for an amount much greater than $10,000.
They’re going to say things like, “I have headaches now and I get cranky with my kids.” You’re going to file a claim for much more than the actual damages. If they can also say they suffer from emotional distress, which means more money for them.
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Tips for Getting a Mortgage with Bad Credit
When it comes to applying for a mortgage, good credit is perhaps the best and most effective tool to have at your disposal. In fact, your credit rating is so important that many experts say you should make sure your credit is good before you start applying for mortgages at all.
Your credit rating, while it may be the most important factor, is by no means the only factor that lenders consider when deciding whether to grant you a loan. That means it’s still possible to get a mortgage even if your credit rating is not optimal. So how do you go about this?
Understanding your Credit Rating
The first step to getting a mortgage with bad credit is understanding how credit scores actually work, and why they affect your ability to get a mortgage.
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Your credit rating, while it may be the most important factor, is by no means the only factor that lenders consider when deciding whether to grant you a loan. That means it’s still possible to get a mortgage even if your credit rating is not optimal. So how do you go about this?
Understanding your Credit Rating
The first step to getting a mortgage with bad credit is understanding how credit scores actually work, and why they affect your ability to get a mortgage.
Read More ...
